A California bill to protect certain truck drivers is nearing passage at the statehouse.
Doug Morris, OOIDA’s director of state government affairs, continues to monitor the legislation to make sure it does not negatively affect owner-operators.
Proposed rules
The Assembly Appropriations Committee voted 11-3 to advance a bill that would require trucking companies and truck drivers to provide certain information to the Port of Long Beach and the Port of Los Angeles.
Sponsored by Sen. Laura Richardson, D-San Pedro, SB703 would mandate ports to provide information collected from trucking companies and truck drivers to the California Labor Commission.
Trucking companies would be responsible for providing information on employee truck drivers. Information must include a worker’s compensation insurance policy that covers all employee truck drivers. The number of employee truck drivers covered by the insurance policy must also be submitted.
A provision to require companies to provide information to the state prior to entering a port for the first time was removed in committee. A requirement for company information to be provided on an annual basis remains in the bill.
Truck drivers who are not employees would also be required to provide to a port on an annual basis information that includes proof of insurance, motor carrier number, federal Department of Transportation number, California motor carrier permit, and DOT registration.
A provision to require affected drivers to provide the information to a port before entering for the first time was removed from SB703.
Trucking companies would be required to update the port within 30 days of a change to their operation that results in more than 50% of their employees being replaced by independent truck drivers.
Failure to comply could result in a $5,000 fine. False or misleading information submitted to the state could result in a $20,000 fine.
The ports of Los Angeles and Long Beach must disclose information provided by a trucking company on its website.
Ports must also provide to the Labor Commission quarterly information regarding each truck that entered the port during the prior month. Submitted information would include the name of the port and gate used for entry; the date and time of entry; the name of the truck owner; and the name insured on the insurance policy that covered the truck.
An amendment made in committee would delay implementation of the new rules by one year. The new effective date would be Jan. 1, 2027.
Support and opposition
Sen. Laura Richardson, D-San Pedro, said that SB703 “represents a critical step in ensuring that our state’s trucking industry operates in a fair, legal and transparent manner.”
“For too long, we’ve allowed a system to persist that exploits hardworking truck drivers by misclassifying them as independent contractors,” Richardson explained in a bill analysis. “This illegal practice robs them of basic workplace protections and puts the burden of operating costs on their shoulders, all while companies profit.”
She added that by requiring the collection of key information about trucking company operations, “we can identify bad actors, ensure labor laws are upheld and protect compliant businesses that are being undercut by those breaking the rules.”
The Western States Trucking Association opposes the pursuit, saying the state should facilitate the use of legitimate owner-operators rather than abolishing them.
SB703 next heads to the Assembly floor. If approved there, the bill would head back to the Senate for it to agree to Assembly changes before the bill could advance to the governor’s desk. LL
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